9 Top Outsourcing Trends for 2023 and Beyond

Speaking on IT outsourcing emerging trends, this itself is a trend all over the IT industry. And it also makes sense, with the growing automation and cloud migration of the IT services. It has dynamically changed the marketplace, because of the leverage provided to hire resources best of best resources across the globe. This evolved outsourcing journey is helping companies to hit the bull’s eye with its multi specialties, in an efficient manner.

Thus it is playing a very essential role in 2022 and beyond as well. The most effective part is that the operational methods and strategic roles benefit the corporates in both short and long terms, due to its strong resilience. And in the past few years, it can be seen as overtaking many business processes across the global IT industry.

The outsourcing have made the process easier and primarily focuses on:

1. Reduced operational cost

2. Improvement in services quality

3. Increased efficiency

4. Scalability

5. Time saving and efficient

6. Expertise oriented

Now that we know what outsourcing is all about and how it is affecting the global IT industry. Let’s have a look at the ongoing and beyond trends making a successful impact over IT and BPS:

Quality over Quantity

Companies' new agenda in 2022 have become more focused on quality work. With increased influence on work-life balance, companies have shifted their attention to the workforce as well. And with that work quality can be seen outdoing and breaking its own records everyday. 

Moreover, companies are also focusing on technology specific roles expertise when they want to outsource the employees and why not! Outsourcing can’t be done by sacrificing anything as you are investing to get that particular service/work done. 

Outsourcing enables customized solutions in order to meet clients satisfaction, hence quality work is needed by hiring experts in technology or business.

Inclination towards Cloud

With increase in Digitalization, every IT company is looking forward to keeping their data more secure, structured with no stress or risk to their data stored. With increase in demand of cloud platforms, cloud-head clients are expected to demand more from the cloud providers such as AWS, Azure etc. Therefore enterprises are expected to demand significantly. The second outsourcing benefit in terms of cloud, is that it allows you to work anytime from anywhere across the globe following security protocols. Cloud applications are becoming hugely popular. According to a forecast in Canada, cloud computing is supposed to reach 10.3 Billion Dollars by 2023 at a CAGR of 16%.

As per Forbes reports, more than 77% of the companies are using cloud applications and services, having at least one application using cloud services. 

In order to keep up with the digitalization, every company ought to migrate their conventional services to cloud such as, communication techniques, collaboration tools, data management etc. Hence cloud migration or cloud inclination is very much the top most trend of Outsourcing. 

Automation

Business Automation, one of the hottest debates around the IT industry. Businesses use automation to keep their repetitive tasks automated. Moreover IT is also moving towards AI for their critical business services as well. For example, automating the insurance policy renewal process rather than conventional manners. Which ensures more time and work efficiency and less headcount as well. 

According to the stats, 72% of the decision makers agree that AI will be a major business advantage for their business. As AI can result in an increase of 50% sales and upto 60% cost reduction for your company, making many processes automate using intuitive algorithms. 

Cost Efficiency

After the Covid-19 pandemic, when everything went online, some industries had no idea how to manage their resources, cost to the company, infrastructure cost which was already invested. Everything changed and somehow things were managed remotely. But Cost management was still the issue. As Businesses had to set up security protocols, had to provide company assets to the team and so on. Where a few companies couldn’t afford all this and it came to a sad end, lay off of the employees, and not only in small firms, but in the MNCs as well.

Resulting company started to look for outsourcing the employees all over the world in order to save some money and focus on results. Companies started hiring the resources all over the world, and even after the “new normal”, this process continued, as it had the best results, with lesser infrastructure and operational costs. With the expertise of technical domains, it’s just reaching towards perfecting by each passing day. Hence, this has become a nice trend for companies to hire resources round the clock.

Demand of a better Cyber Security

The facts shows that during Covid-19 pandemic, 81% of the companies came across cyber attacks, henec the demand to increase the Cyber Security has increased gradually, in order to make the work from home culture easier. That’s the reason companies are hiring Managed Service Providers(MSP). It is a third party service provider who manages specialized operations for security, such as data security.

Companies are handing over their security authorities to these MSPs as they are supposed to have cyber security experts in their firms, such as Mcafee.

Focused Delivery

We all know that delivery has become the organization's main focus, and hence outsourcing is touching its peak touch points. Client focus has become the primary reason to outsource the resources while managing the project by an in-house and dedicated project manager to the allocated resources. Outsourcing generally works on contracts, hence there is no vital risk in terms of employee management as well, as they have signed an NDA, where if the resource leaves the project in between, he has to pay a cost. 

By that they can clearly focus on the client’s deadline and assign them a roadmap of what has to be done within the deadline.

Data Ownership

A very important factor to outsource the resources, as data ownership is completely in your hands by agreeing to a contract mutually. While you own the data, it gives you positive aftereffects for your organization’s in the long run. 

Rise of Remote Work

After Covid-19 pandemic people learnt how to work in a fully remote manner and in spite of losing the revenue, it came out totally different. The firms which were able to provide e2e support for remote work culture, could see a rise in business as well. Companies had to spend less on premise infrastructure cost and focus more on their cloud infrastructure and technological advancement. Hence they grew well hand in hand, and people came closer to their families which indeed changed a lot, while adapting to these tough changes. 

Now that we are comfortable in this setup, companies are planning to create this culture for longer. And it helps to hire from a big talent pool of experts, which indeed is the best asset for firms.

Social Media Engagement

We all have come across this point for sure. Not only fashion influencers but also the tech savvies and tech companies started growing their online presence, which came out really well and more than expected. People started creating communities and relating where the whole world was already going haywire. For example: Every single company participated in “we are all #inthistogeher campaign” when the tough times were going on. Companies started to emphasize more on mental health as well, due to this overwhelming phase.

And it isn’t the end. It’s still going to be bigger and better. As Social Media connects for good.

To Sum Up

These ongoing trends in Outsourcing are outstanding and always working toward being better. Hence we hope you got an insight into what trends to keep in mind while you are planning to outsource the workforce from all over the globe.